541 Insurance Commissions Earned

Lease & Rental Activity

F & I, Protection Plan Activity

Sales Synopsis

Account 541, Insurance Commissions Earned is established to record the commissions earned for selling supplemental insurance coverage such as GAP, collision damage waiver to Rental customers.

Debits

Credits

 

  1. The amount of commissions earned on supplemental insurance sold to customers on Lease and Rental vehicles

 

Example 1

Record the accrual for the commissions earned on supplemental insurance coverage sold for the month in the amount of $615.

Journal: Standard Entries Journal

Entry:

 

Debit

Credit

Account 264

Ins. Commissions Receivable

$615

 

Account 541

Insurance Commissions Earned – Lease & Rental Activity

 

$615